Debt collection is the process by which a person or entity who is owed money or property seeks payment for the debt. Debt collection may be performed by the person or entity who is owed the debt (the creditor), or may be performed by a third-party debt collector hired by the creditor to collect the debt on behalf of the creditor. Sometimes creditors sell the debt to another entity at a discounted value, and the entity that purchases the debt becomes the creditor.

Debts that are often the subject of debt collection efforts include (1) credit card debt; (2) car or auto loan debt; (3) medical debt; (4) student loan debt; (5) unpaid utility and telephone bills; and (6) personal loan debt.

If you owe money, you have a legal obligation to repay it. But state and federal laws—such as the Fair Debt Collection Practices Act—prohibit debt collectors from using deceptive or abusive tactics to collect the debt.

In Illinois, debt collection is regulated by both state statutes and federal law. The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets national standards for the collection of debts, prohibiting deceptive, abusive, or unfair debt collection practices. It applies to third-party debt collectors who are collecting on behalf of another creditor. Illinois also has its own set of laws that govern debt collection practices, including the Illinois Collection Agency Act, which requires debt collection agencies to be licensed and regulates their conduct. Additionally, the Illinois Consumer Fraud and Deceptive Business Practices Act can apply to debt collection practices, offering protections against fraud and deception. Creditors and debt collectors in Illinois must adhere to these laws when attempting to collect debts such as credit card debt, auto loans, medical bills, student loans, utility bills, and personal loans. Consumers have the right to request verification of the debt and may dispute debts they believe are not valid. If a debt collector violates state or federal laws, consumers may have legal recourse, including the right to sue the collector for damages.